Slide 8 of 24
Notes:
So, what happened last winter?
At last year’s SHOPP conference, my renowned colleague, Joanne Shore, warned of the potential for high prices. At this time last year, distillate stocks were very low. This graph shows East Coast inventories, which at the end of July 2000, were well below the normal band. We focus on the East Coast (PADD 1) because this is a region in which heating oil is a major winter fuel. Furthermore, the East Coast consumes almost 2/3 of the nation’s heating oil (high sulfur distillate).
East Coast stocks were well below normal last year from July through December, but then actually increased in January, when they typically decline. In fact, the increase was only the 2nd time East Coast distillate stocks have increased in January since EIA has kept PADD level data (1981)!
